- Binance to stop operation in the next 14 days in Malaysia.
- Binance will stop its futures and derivatives products offerings in Italy, Germany.
In addition, the commission said Binance must disable both its website and mobile applications 14 days from July 26. However, immediately ceasing all media and marketing activities. And immediately restricting Malaysian investors from accessing Binance’s group in Telegram, a messaging app.
Moreover, this comes after the commission already added Binance to the country’s alert list of unauthorized entities in July 2020. All crypto asset exchanges, as per the commission, have to be registered. Added to this, a public reprimand is offered against Binance Holdings Limited, its CEO Zhao Changpeng, and three other Binance entities. This includes Binance UAB, registered in Lithuania; Binance Digital Limited, registered in the UK; and Binance Asia Services Pte Ltd, registered in Singapore.
In the past months, Binance has been warned multiple times, and in some jurisdictions, been banned from operating due to its failure to register with local regulators. Moreover, Malaysia’s clampdown follows other regulators in Thailand, Hong Kong, Italy, Germany, Japan, and the US going after the exchange.
More so, CEO of Crypto Facilities, Gary Worrall, one of the first regulated digital asset derivatives exchanges in Europe, said his firm worked hard to acquire the right licensing. He also adds ‘Crypto is no longer just a Wild West.
Binance Will Stop Futures and Derivatives Products Offerings
Also on Friday, Binance revealed it will stop its futures and derivatives products offerings in Germany, Italy, and the Netherlands. Binance said,
“With immediate effect, users from these countries will not be able to open new futures or derivatives products accounts”
However, the countries will have 90 days to end their open positions. In 2017, Binance was founded, has long boasted its decentralized operations, and there is no formal headquarters. More so, it was present in China and officially domiciled in the Cayman Islands, the firm’s scattered physical presence has irked regulators.
However, on July 27, Zhao explained his intention of cooperating with global regulators. Added to this, he said if authorities want Binance to have a headquarters, then his firm will develop a regional headquarters to have a very easy to understand structure. Moreover, Zhao said they need to be a licensed financial institution.